Buying a property is certainly one of the most important purchases you will ever make. It is important to make an informed choice and to go for the type of property that will best suit you. When you contemplate becoming an owner, consider the many types of homes available. Besides the single-family home and the condo, you can always choose to opt for a type of income property known as the plex (duplex, tri-plex, four-plex and five-plex), or townhouse.
If youre hesitating between the purchase of a single-family home and a condo, the first thing to ask yourself is, what kind of lifestyle do you want?
You work, youre on the go, you travel regularly and, therefore, have little time to devote to your home? As well as offering you a safe environment, the condo is not as demanding as a single-family home since you arent required to mow the lawn, pick up dead leaves, shovel snow, etc.
However you must be very open-minded to enjoy the condo experience given that you need to be in agreement with other owners about many important aspects such as building renovation and maintenance. Thats why it is recommended that you carefully choose a building in which the other owner profiles match with your own. For example, a family with two young children might not feel welcome in a building where the majority of tenants are retired and vice versa.
From small horizontal and vertical building types to high-rises, triplexes and townhouses, to complexes offering active community life or a magnificent view, there are many types of condos and many price scales. Make sure you properly evaluate your needs before making up your mind.
The detached Single Family Home
The single-family home is by far the most popular property for consumers. As the owner of a single-family home you have the freedom to develop your property as you please , according to your own tastes. You also certainly enjoy the highest level of privacy, given that no other occupants share the home.
However its important to consider the amount of maintenance the purchase of a single-family home generates. The upkeep of the lawn, landscaping and the snow removal require time and money. And remember, the bigger the property, the higher the maintenance costs.
The half-duplex is a single-family home but it is attached to the other half of the building. You share a roof, exterior, and often fencing etc It helps if both sides agree with splitting the costs for maintenance on shared items.
The tri-plex, four-plex etc are just buildings with more than one residence in it. Aside from earning rent, which helps pay for the mortgage, there can be other financial benefits. The mortgage interest for the part of the plex which is rented is tax deductible since it goes towards the purchase as income revenue. Also, expenses, as a result of the maintenance and upkeep of your tenants residence, are tax deductible.
A lack of privacy and extra work might be considered a drawback for the occupant-owner, but in spite of this, the plex becomes somewhat of an interesting purchase in view of the savings it can generate.
A relatively recent addition to the mix is a single-family townhouse. It features a lot(yard), does not have condo fees, and shares common wall(s), roof etc. with its fellow townhouses. It is another way to have affordable homeownership without condo fees. Look for them more in the future.
– – –
Take the time to properly evaluate your needs. A REALTOR like us, can help advise you throughout your decision-making process.